Closure's effect on 'web' of companies

Cadbury's  closure will ripple through the Dunedin economy, costing support companies their contracts and possibly even their staff, the Otago Chamber of Commerce says.

Chamber chief executive Dougal McGowan said yesterday he was compiling a list of companies that could be affected if, as expected, Cadbury closed its gates next year.

The closure would affect a ``web'' of companies providing services and supplies to the Cadbury plant, potentially costing more jobs than the 362 to be lost at the factory itself, he said.

Staff in companies even two or three steps removed from Cadbury could still face redundancy or reduced hours as a result of the closure.

Those facing reduced hours could be forced to look outside the city for new work, and might never return, he said.

``These are the flow-on effects that we don't quite know yet.''

Mr McGowan said work had already begun to map the companies affected by Cadbury's plan, to better understand the impact on the city's economy as a whole.

He was talking to union representatives, and hoped to speak to Cadbury management soon, to help get a complete picture.

There had been a ``tremendous response'' from Dunedin businesses wanting to help, by offering to employ Cadbury staff, since Thursday's announcement, he said.

And, asked about the future of manufacturing in Dunedin, Mr McGowan agreed with Labour leader Andrew Little's sentiments.

Mr Little, after meeting union representatives at the factory yesterday, said there was still a future for ``high-tech'' and ``high-skill'' manufacturing in the city.

Mr McGowan agreed the future was to be found in ``quite high-end, niche'' manufacturing, and some companies were already forging ahead.

``That's where the future lies,'' he said.

The disappointment was Cadbury had already invested in high-tech equipment and systems, and was a top performer as a result.

``That's where this one is quite difficult . . . they are doing things very effectively with highly technical equipment, but a long way from market.''


 

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